What Does Commercial Umbrella Insurance Cover?

How a commercial umbrella insurance policy can protect your business.

As a business owner, you may not spend too much time thinking about insurance coverage. However, making sure your business is protected is essential. Although a commercial umbrella policy is often overlooked by business owners, such a policy can provide significant coverage in your time of need. Commercial umbrella insurance, also known as excess liability insurance, comes into play if a settlement against your business exceeds the limits of one of your underlying policies.

Commercial umbrella insurance can be applied when a covered claim exhausts your current liability policy. For example, say your policy has already paid out $1 million for a claim, and that’s as much coverage as the policy can offer. However, you’re still liable for a further $100,000. Your umbrella insurance policy can help to cover the remaining cost.

Your commercial umbrella coverage helps to cover certain policies your business has. There are three underlying liability policies that fall under the protection of this policy:

General liability insurance

Employer’s liability insurance

Commercial auto insurance

Keep in mind that while a commercial policy can cover a lot of situations, it does have its limits. Your commercial umbrella policy cannot be applied to:

Property insurance claims

Errors and omissions / Professional liability insurance claims

Any expenses already covered by an underlying policy

Do you have further questions about what a commercial umbrella policy can do for you? Contact Tompkins Insurance Agencies. We can help you find reliable coverage for your company.